2003(7) Supreme 770
SUPREME COURT OF INDIA
(From Gauhati High Court)
Y.K. Sabharwal & B.N. Agrawal, JJ.
Bokajan Cement Corporation Employees Union -Appellant
versus
Cement Corporation of India Ltd. -Respondent
Civil Appeal No. 2419 of 2001
Decided on 10-11-2003
Counsel for the Parties :
For the Appellant : P.K. Goswami, Sr. Advocate, Rajiv Mehta, Advocate.
For the Respondent : V.R. Reddy, Sr. Advocate, S.V. Deshpande, Advocate.
Held : Section 6(e) does not provide that on cessation of employment, an employee would cease to be a member. On aspect of cessation of membership of the trade union, the trade union can make a provision in its Constitution. It is one thing to say that the Constitution of trade union shall provide that those actually engaged or employed would be entitled to be admitted as members of the trade union and it is altogether different thing to say that they would cease to be members once they are not actually engaged or employed. The latter is not what Section 6(e) contemplates. Likewise, clause 5 of the Constitution of the trade union provides for all workers employed by the Cement Corporation of India directly or indirectly throughout to be eligible for the membership of the trade union on acceptance of the other part of the said clause. The expression throughout in clause 5 only shows that all through the said eligibility condition will continue. Again clause 5 is not a provision for cessation but is a provision for eligibility to become a member. As already stated, these clauses are not required to be construed as a statute. The apprehension of Mr. Reddy that non-acceptance of his contention would result in a situation of once a member - always a member , is not of any significance since that depends upon the Constitution of a trade union. If a trade union accepts that once a member would always continue to be a member, there is nothing in the Act which mitigates against it. A trade union may provide under which circumstances a member would lose the membership. (Para 14)
JUDGMENT
Y.K. Sabharwal, J.-The short question for determination in this matter is whether an employee as a result of cessation of employment would lose his right to continue as a member of the trade union. The High Court, by the impugned judgment, reversing the decision of a Single Judge, has answered the question in the affirmative. The union is the appellant.
2. The High Court has held that the right to continue as a member of the trade union continues so long as an employee is actually employed. For its conclusion, the reliance has been placed by the High Court on Section 6 of the Trade Union Act, 1926 (for short, the Act ) and clause 5 of the Constitution of Bokajan Cement Corporation Employees Union. The High Court has held that the membership of a trade union is not a benefit that accrues to the employee so as to claim its continuance even after he ceases to be in employment; his right continues so long as he remains employed and on cessation of employment, membership of trade union ceases.
3. There is no specific provision in the Act which provides for automatic cessation of membership of the trade union on an employee on cessation of his employment. There is also no specific clause in the Constitution of the appellant union which provides for such automatic cessation. Learned counsel for the respondent, however, places strong reliance on Section 6(e) of the Act and clause 5 of the Constitution of the trade union to support the impugned judgment.
4. Let us first look at some provisions of the Act.
Section 2(h) defines the expression trade union . It reads:
"`Trade union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more. Trade Unions:
Provided that this Act shall not affect-
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of instruction in any profession, trade or handicraft."
5. "Registered Trade Union" means a trade union registered under the Act (Section 2 (e)). The mode of registration is provided in Section 4. Every application for registration of a trade union is required to be accompanied by a copy of the rules of the trade union and a statement of the particulars as provided in Section 5 of the Act. Section 6, inter alia, provides that a trade union shall not be entitled to registration unless rules thereof provide for the matters enumerated in clauses (a) to (j). For present purposes clause (e) is relevant. Section 6(e) reads as under:-
"The admission of ordinary members who shall be persons actually engaged or employed in an industry with which the Trade Union is connected, and also the admission of the number of honorary or temporary members as (office- bearers) required under Section 22 to form the executive of the Trade Union."
6. Section 22, inter alia, provides that not less than one-half of the total number of the office-bearers of every registered trade union in an unrecognized sector shall be persons actually engaged or employed in an industry with which the trade union is connected.
7. It is, thus, clear that the rules of the trade union have to provide for the admission of ordinary members who shall be persons actually engaged or employed in an industry with which the trade union is connected, and also the admission of the member of honorary or temporary members as office bearers required under Section 22 to form the executive of the trade union. The Constitution of trade union has, inter alia, to comply Section 6(e) so as to seek registration under the Act.
8. Mr. Reddy, learned counsel for th
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